Bega extends offer for Australia's Warrnambool

SYDNEY Nov 26 (Reuters) - Bega Cheese Ltd said on
Tuesday it is extending its offer for Australia's Warrnambool
Cheese and Butter Factory Co by two weeks as it
struggles to remain in the takeover race.

Bega and rival bidder Murray Goulburn Co-operative Ltd are
considering taking the battle for Warrnambool to the Takeover
Panel in the wake of a revised bid by Saputo Inc.

Saputo declared its A$505 million ($463 million) bid for
Warrnambool unconditional on Monday and said it would hike its
offer if it won control of Australia's oldest dairy maker.

But Canada's largest dairy company is still a long way short
of success, revealing on Tuesday it holds just 3.7 percent of
Warrnambool.

Saputo's simplified offer removes conditions associated with
dividends payable by Warrnambool, which is backing the offer.

Bega and Murray Goulburn argue the decision to drop A$1.31
per share in proposed dividends means that shareholders will not
have access to A$0.56 in franking credits. On that basis, the
value of the bid has fallen from A$9.56 to A$9.20 if 50 percent
acceptance is achieved, they said.

Saputo said it has followed takeover guidelines.

Bega is extending its offer to Dec. 12, the day before
Saputo's deadline.
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